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docs_tfgrid_economics/docs/core-concepts/token-system.md
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Token System

Our ecosystem uses a multi-currency system to ensure both stability for utility and opportunities for growth and investment.

Token Types

TFP (ThreeFold Point) = is same as TFT but only exists in the marketplace

  • Definition: TFP is a converted TFT and only exists within the marketplace ecosystem for internal accounting and settlements.
  • 1 TFP = 1 TFT (at time of conversion)
  • TFP cannot be converted back to TFT until the market price of TFT exceeds the fixed conversion rate of CC to TFP (see below in swap section).
    • in other words if on public markets the TFT is prices higher than 1 CC in USD value then you can convert back.
  • Once the market price surpasses the fixed rate, users can return TFP to unlock their original TFT.
  • When a user buys storage, compute, or bandwidth, they pay in CC, but the settlement to farmers is done in TFP.
  • When users convert to TFP, their TFT is locked until they return TFP to unlock their TFT.

TFT (ThreeFold Token)

  • Type: Tradable reserve asset
  • Availability: Traded on public blockchains
  • Characteristics: Price can be volatile, currently trading at artificially low prices
  • Role: Market-facing asset and entry gateway into the ecosystem
  • Supply: Scarce, capped at 1 billion maximum
  • Not directly usable inside the marketplace, must be converted to TFP first

CC (Cloud Credit)

  • Type: Stable utility token
  • Peg: 1/1000 of a gram of gold (0.001g)
  • Availability: Only circulates within the digital marketplace (non-tradable)
  • Purpose: Primary medium of exchange for services within the ecosystem
  • Generation: Minted when users enter with TFT or credit card, burned when exiting

Swaps

TFP to CC Swap (both directions)

  • Function: Allows users to swap TFP for CC at a fixed rate, which either mints new CC or burns existing CC
  • Acquisition: Users can acquire CC at a fixed rate of 1 CC for 2 TFP, until the market price of TFP surpasses this rate
    • Open Question: maybe it should be 1 CC = 1 TFP? Lets use forum to decide.

USD to CC Swap (one way)

  • Function: Allows users to purchase CC directly with USD via credit card
  • Rate: Fixed rate of 1 CC = $0.128 (as of Oct 8, 2025, changes as the price of gold changes)
  • Purpose: Provides an easy entry point for new users unfamiliar with TFT or cryptocurrencies
  • USD Treasury: USD collected is held in a treasury to back the CC in circulation

  • Hosters (farmers) are paid in TFP, which they can convert to TFT or hold for potential appreciation (80% of revenue)
  • 10% of revenue is burned to reduce supply and maintain peg stability, burned TFT.
  • 10% of revenue goes to ThreeFold Foundation for ecosystem development and maintenance

Why This System?

This multi-token architecture solves several critical problems:

  • Price Stability: CC provides predictable pricing for services (pegged to gold)
  • Market Opportunity: TFT remains tradable with upside potential
  • Controlled Liquidity: Prevents sudden token dumps while maintaining fairness
  • Sustainable Growth: Minting/burning mechanisms ensure backing and prevent inflation
  • Operational Viability: Farmers receive stable CC for planning while retaining TFT exposure options